COMESA Common market for Eastern and Southern Africa. Customs Union

Course summary COMESA (The Common market for Eastern and Southern Africa)

The COMESA (Common market for Eastern and Southern Africa) states, in implementing a Free trade area, are well on their way to achieving their target of removing all internal trade tariffs and barriers, an exercise which is to be completed by the year 2000.

COMESA's current strategy can thus be summed up in the phrase "economic prosperity through regional integration". With its 19 member states, population of over 389 million and annual import bill of around US$32 billion with an export bill of US$82 billion COMESA forms a major market place for both internal and external trading.

Example of the course: COMESA (The Common market for Eastern and Southern Africa)

COMESA Members: Angola, Burundi, Comoros, Democratic Republic of Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, The Kingdom of Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Rwanda, Seychelles, Somalia, Sudan, Swaziland, Tanzania, Uganda, Zambia, and Zimbabwe.

The FTA (Free trade area) was achieved on 31st October, 2000 when nine of the member states namely Djibouti, Kenya, Madagascar, Malawi, Mauritius, Sudan, Zambia and Zimbabwe eliminated their tariffs on COMESA originating products, in accordance with the tariff reduction schedule adopted in 1992.This followed a trade liberalization program that commenced in 1984 on reduction and eventual elimination of tariff and non-tariff barriers to intra- Regional trade. Burundi and Rwanda joined the FTA on 1st January 2004. These eleven FTA members have not only eliminated customs tariffs but are working on the eventual elimination of quantitative restrictions and other non-tariff barriers.

A Customs Union maybe defined as a merger of two or more customs territories into a single customs territory, in which customs duties and other measures that restrict trade are eliminated for substantially all trade between the merged territories. The territories, in turn apply the same duties and measures in their trade with third parties. In preparation for a Customs Union the Eleventh Meeting of the Council of Ministers held in Cairo, Egypt adopted a Road Map that outlined programs and activities whose implementation was necessary before the launching of the Union.

Other objectives which will be met to assist in the achievement of trade promotion include:

- Trade liberalization and Customs co-operation, including the introduction of a unified computerized Customs network across the region.
- Improving the administration of transport and communications to ease the movement of goods services and people between the countries.
- Creating an enabling environment and legal framework which will encourage the growth of the private sector, the establishment of a secure investment environment, and the adoption of common sets of standards.
- The harmonization of macro-economic and monetary policies throughout the region.

The Eastern and Southern African Trade and Development Bank (PTA Bank) was established on 6 November 1985 following the provisions of the Treaty of 1981 establishing the Preferential Trade Area (PTA), which has since been transformed into the Common market for Eastern and Southern African States (COMESA), as a financial arm of the integration arrangement.

The infrastructures in COMESA (The Common market for Eastern and Southern Africa) region. The COMESA road network consists of approximately 561,000 km of classified roads, of which 64,000 km is tarred. The main transport corridors are essentially focused in an east-west direction from the ports to the hinterlands, with very few north-south links.

AFRICA Scholarships

COMESA, Common market, Eastern, Southern Africa, FTA, Free trade, Area, Customs Union, Eastern and Southern, African Trade, Development Bank, PTA Bank, Investing, textile, Oil, Seeds, leather, Master, international business